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 Columbia Property Trust Reports Fourth Quarter 2016 Results
   Thursday, February 09, 2017 4:05:05 PM ET

Columbia Property Trust, Inc. (CXP ) reported financial results today for the fourth quarter and year ended December 31, 2016.

Highlights:

-- For the fourth quarter of 2016, net income per diluted share was $0.22 and Normalized Funds from Operations (FFO)(1) per diluted share was $0.37. Cash flows from operations were $43.4 million and Adjusted Funds from Operations (AFFO)(1) was $(43.0) million, due to previously disclosed maintenance capital costs incurred in the quarter.

-- In the fourth quarter of 2016, the Company continued its non-core disposition program, exiting the Dallas, Denver, and Phoenix markets, resulting in total dispositions of $660.5 million in 2016.



-- In January 2017, the Company exited the Houston and Cleveland markets, resulting in total dispositions of $539.5 million.

-- The Board of Directors revised the Company’s dividend policy, effective in the first quarter of 2017, and declared a regular quarterly cash dividend of $0.20 per share, or $0.80 per share on an annualized basis.

-- The Company issued guidance that reflects an expected increase in net income, FFO and AFFO beginning in the second half of 2017 and continuing into 2018.

"With $1.2 billion of dispositions completed over the last 12 months, we have successfully concluded our ambitious program of planned dispositions, which was necessary to achieve our desired transformation. Our portfolio is now concentrated in our desired high-barrier markets," noted Nelson Mills, president and chief executive officer of Columbia Property Trust.

Mr. Mills added, "The benefits of our strategy are coming to fruition, and the Company is well-positioned for sustainable, long-term growth and value creation. The strength of our portfolio - reflected in positive leasing spreads, strong occupancy and leasing momentum - positions Columbia Property Trust for cash flow growth. We will continue to take a disciplined approach to seeking new investments to leverage our scale and competitive edge in our core markets."

(1)   Non-GAAP financial measure. See Definitions and reconciliation
                         between GAAP and non-GAAP financial measures or additional
                         information, including the specific reasons why we provide these
                         non-GAAP financial measures.
                          

Portfolio Highlights:

During the fourth quarter, we entered into leases for an aggregate of 261,000 rentable square feet. Our fourth quarter leasing activity included 228,000 square feet of new leases, with an average lease term of approximately 12 years, and 33,000 square feet of renewal leases, with an average lease term of approximately five years.

As of December 31, 2016, our portfolio of 21 office properties was 90.6% leased and 89.2% occupied compared with 93.2% leased and 91.6% occupied as of December 31, 2015, and 90.7% leased and 86.7% occupied as of September 30, 2016.

For leases executed during the quarter, we experienced a 17.0% increase in rental rates based on GAAP rents and a 4.5% increase in rental rates based on cash rents.

Disposition Activity:

Prior to year end 2016, we completed the dispositions of: 9127 South Jamaica Street in Denver, Colorado for gross proceeds of $19.5 million; Sterling Commerce in Dallas, Texas for gross proceeds of $51.0 million; and SanTan Corporate Center in Phoenix, Arizona for gross proceeds of $58.5 million, bringing total disposition proceeds to $660.5 million for 2016. These sales resulted in the complete exit of all three markets.

In January 2017, we exited Houston with the sale of 5 Houston Center, Energy Center I and 515 Post Oak, for $272.0 million; and exited Cleveland with the sale of Key Center Tower and Key Center Marriott in Cleveland for $267.5 million.

Financial Results:

Net income was $27.4 million, or $0.22 per diluted share, for the fourth quarter of 2016, compared with $10.2 million, or $0.08 per diluted share, in the prior-year period. For the full year 2016, net income was $84.3 million, or $0.68 per diluted share, compared with $44.6 million, or $0.36 per diluted share, in prior year.

Normalized FFO(1) was $45.2 million, or $0.37 per diluted share, for the fourth quarter of 2016, compared with $59.2 million, or $0.48 per diluted share, in the prior-year period. For the full year 2016, Normalized FFO was $205.0 million, or $1.66 per diluted share, compared with $248.9 million, or $1.99 per diluted share, in the prior year.

Cash flows from operations were $43.4 million for the fourth quarter of 2016, compared with $48.1 million in the prior-year period. For the full year 2016, cash flows from operations were $193.1 million, compared with $223.1 million for 2015. For the full year 2016, AFFO(1) was negative $43.0 million for the fourth quarter of 2016, compared with $33.8 million in the prior-year period. AFFO(1) was $74.7 million for 2016, compared with $169.5 million in the prior year. The decrease in 2016 was primarily due to maintenance capital expenditures related to our recently signed lease with NYU Medical at our 222 East 42st Street Building.

For the fourth quarter of 2016, NOI decreased 19.9% based on GAAP rents and 22.7% based on cash rents compared with the prior-year period, primarily due to dispositions in 2016. Same store NOI(1) for the fourth quarter of 2016 decreased 6.3% based on GAAP rents and 9.3% based on cash rents, primarily due to decreased occupancy at our existing properties and new leases in free rent periods.

For the full year 2016, NOI decreased 14.0% based on GAAP rents and 15.1% based on cash rents compared with the prior year, primarily due to dispositions. Same store NOI(1) for 2016 decreased 0.9% based on GAAP rents and 0.2% based on cash rents.

(1)   Non-GAAP financial measure. See Definitions and reconciliation
                         between GAAP and non-GAAP financial measures or additional
                         information, including the specific reasons why we provide these
                         non-GAAP financial measures.
                          

Distributions:

For the fourth quarter of 2016, we paid a dividend of $0.30 per share, or an annualized rate of $1.20 per share. The dividend was paid on January 5, 2017, to stockholders of record as of December 1, 2016.

In a separate release issued today, Columbia announced that its Board of Directors has revised the Company’s dividend policy and declared a regular quarterly cash dividend of $0.20 per share, or $0.80 per share on an annualized basis, for the first quarter of 2017.

Share Repurchases:

During 2016 we continued to execute on our $200 million share repurchase program. In the fourth quarter of 2016 we repurchased 1.3 million shares for $27.8 million, or a weighted average price of $21.46 per share. Since the inception of the program in September 2015, we have acquired 3.1 million shares for a total of $69.1 million.

Guidance for 2017:

For the year ending December 31, 2017, the Company expects to report Normalized FFO in a range of $1.15 to $1.22 per diluted share, and Net Income in the range of $0.18 to $0.25 per diluted share.

 
A reconciliation of projected Net Income Available to Common
Stockholders per diluted share to projected FFO and Normalized FFO
per diluted share is provided as follows:
 
                                                                                            Full Year
                                                                                                                                 2017 Range
                                                                                           ---------------------------------------------------------------------------------------
                                                                                                  Low                      High
                                                                                           ----------------                                          -----------------------------
Net income                                                                                       $    0.18                                                 $                 0.25
    Add: Real estate depreciation & amortization                                                      0.97                                                                   0.97
                                                                                           ----------------                                          -----------------------------
FFO                                                                                                   1.15                                                                   1.22
    Adjustments                                                                             --                                                         --
                                                                                           ----------------                                          -----------------------------
Normalized FFO                                                                                   $    1.15                                                 $                 1.22
                                                                                           ======= =======                                           ======= ====================
                                                                                                                                                              

Our guidance for 2017 is based on the following assumptions for our portfolio:

-- Leased percentage at year end 2017 of 93% to 95%

-- GAAP straight-line rental income of $35 million to $40 million

-- G&A of $35 million to $37 million

-- $539.5 million of properties were sold in January 2017. Assumes no further dispositions except for the transfer of the 263 Shuman Boulevard property to the lender in settlement of the $49.0 million mortgage note.

-- Acquisitions of $500 million

-- Weighted average diluted share count of 123.2 million (excludes impact of share repurchases after February 9, 2017)

Jim Fleming, Executive Vice President and Chief Financial Officer, added, "The company is well positioned with a strong and healthy balance sheet and greater scale in our high-barrier markets. Our guidance for 2017 reflects our plan to deploy the proceeds from recent dispositions into new opportunities in our core markets, and to reduce our secured debt, while continuing to realize the benefits of sustained leasing volumes and positive re-leasing spreads over the past several quarters. As we move forward, we expect these elements to come together and result in increasing cash flows and same-store NOI growth."

These estimates reflect management’s view of current market conditions and incorporate certain economic and operational assumptions and projections. This annual guidance includes the continued enhancement of the portfolio based on the above assumptions. Actual results could differ from these estimates. Note that individual quarters may fluctuate on both a cash basis and a GAAP basis due to the timing of acquisitions and dispositions, lease commencements and expirations, the timing of repairs and maintenance, capital expenditures, capital markets activities and one-time revenue or expense events. In addition, the Company’s guidance is based on information available to management as of the date of this release.

Investor Conference Call and Webcast:

We will host a conference call and live audio webcast, both open for the general public to hear, on Thursday, February 9, 2017, at 5:00 p.m. ET to discuss quarterly financial results, business highlights, and 2017 guidance. The number to call for this interactive teleconference is (412) 542-4180. A replay of the conference call will be available through February 16, 2017, by dialing (877) 344-7529 and entering the confirmation number, 10099132.

The live audio webcast of the Company’s quarterly conference call will be available online in the Investor Relations section of the Company’s website at www.columbia.reit. The online replay will be available shortly after the call and archived for approximately twelve months following the call.

About Columbia Property Trust

Columbia Property Trust (CXP ) owns and operates Class-A office buildings primarily in high-barrier-to-entry, primary markets. Our portfolio includes 16 office properties containing eight million square feet, concentrated in New York, San Francisco, Atlanta, and Washington, D.C. Columbia carries an investment-grade rating from both Moody’s and Standard & Poor’s. For more information, please visit www.columbia.reit.

Definitions:

Funds From Operations ("FFO") - FFO, as defined by the National Association of Real Estate Investment Trusts (NAREIT), represents net income (computed in accordance with GAAP), plus depreciation of real estate assets and amortization of lease-related costs, excluding gains (losses) on sales of real estate and impairment losses on real estate assets. The Company computes FFO in accordance with NAREIT’s definition, which may differ from the methodology for calculating FFO, or similarly titled measures, used by other companies and this may not be comparable to those presentations. We consider FFO an appropriate supplemental performance measure given its wide use by and relevance to investors and analysts. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets, which assume that the value of real estate diminishes predictably over time.

Normalized FFO - We calculate Normalized FFO by starting with FFO, as defined by NAREIT, and adjusting for certain items that are not reflective of our core operations, including: (i) real estate acquisition-related costs, (ii) listing costs, (iii) loss on interest rate swaps and (iv) loss on early extinguishment of debt. Such items create significant earnings volatility. We believe Normalized FFO provides a meaningful measure of our operating performance and more predictability regarding future earnings potential. Normalized FFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net income; therefore, it should not be compared to other REITs’ equivalent to Normalized FFO.

Adjusted Funds from Operations - AFFO is calculated by adjusting Cash Flow from Operations to exclude (i) changes in assets and liabilities resulting from timing differences (ii) additional amortization of lease assets (liabilities), (iii) straight-line rental income, (iv) gain (loss) on interest rate swaps, (v) recurring capital expenditures, and adding back (vi) stock based compensation expense and (vii) non-cash interest expense. Because AFFO adjusts for income and expenses that we believe are not reflective of our core operations, we believe AFFO provides useful supplemental information. AFFO is a non-GAAP financial measure and should not be viewed as an alternative measurement of our operating performance to net cash flows from operating activities or net income.

EBITDA - EBITDA is defined as net income before interest, taxes, depreciation and amortization. We believe EBITDA is a reasonable measure of our liquidity. EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate EBITDA differently and our calculation should not be compared to that of other REITs.

Adjusted EBITDA - Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization and incrementally removing any impairment losses, gains or losses from sales of property, real estate acquisition-related costs, discontinued operations adjustments, or other extraordinary items. We do not include impairment losses in this measure because we feel these types of losses create volatility in our earnings and make it difficult to determine the earnings generated by our ongoing business. We believe adjusted EBITDA is a reasonable measure of our liquidity. Adjusted EBITDA is a non-GAAP financial measure and should not be viewed as an alternative measurement of cash flows from operating activities or other GAAP basis liquidity measures. Other REITs may calculate adjusted EBITDA differently and our calculation should not be compared to that of other REITs.

Net Operating Income (based on cash rents) - NOI - cash rents is defined as Adjusted EBITDA adjusted for (i) portfolio general and administrative expense, (ii) interest rate swap valuation adjustments, (iii) interest expense associated with interest rates swaps, (iv) non-cash property operations, (v) straight-line rental income, and (vi) net effect of above/(below) market amortization. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. NOI - cash rents is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.

Net Operating Income (based on GAAP Rents) - NOI - GAAP rents is defined as Adjusted EBITDA adjusted for (i) portfolio general and administrative expense, (ii) interest rate swap valuation adjustments, and (iii) interest expense associated with interest rates swaps. The company uses this measure to assess its operating results and believes it is important in assessing operating performance. NOI - GAAP rents is a non-GAAP measure which does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.

Same Store Net Operating Income ("Same Store NOI") - Same Store NOI is calculated as the NOI attributable to the properties continuously owned and operating for the entirety of the reporting periods presented. We believe Same Store NOI is an important measure of comparison of our stabilized properties’ operating performance. Other REITs may calculate Same Store NOI differently and our calculation should not be compared to that of other REITs.

Forward-Looking Statements:

Certain statements contained in this press release other than historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such statements include, in particular, statements about our plans, strategies, guidance, and prospects and are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We make no representations or warranties (express or implied) about the accuracy of any such forward-looking statements contained in this press release, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Any such forward-looking statements are subject to risks, uncertainties, and other factors and are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual conditions, our ability to accurately anticipate results expressed in such forward-looking statements, including our ability to generate positive cash flow from operations, make distributions to stockholders, and maintain the value of our real estate properties, may be significantly hindered. See Item 1A in the Company’s most recently filed Annual Report on Form 10-K for the year ended December 31, 2016 and subsequently filed periodic reports for a discussion of some of the risks and uncertainties that could cause actual results to differ materially from those presented in our forward-looking statements. The risk factors described in our Annual Report are not the only ones we face, but do represent those risks and uncertainties that we believe are material to us. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may also harm our business.

Management’s Quotes:

Quotes attributed to management within this document reflect management’s beliefs at the time of release.

 
                                                                                                                            COLUMBIA PROPERTY TRUST, INC.
                                                                                                                                CONSOLIDATED BALANCE
                                                                                                                                       SHEETS
                                                                                                                 (in thousands, except share and per-share amounts)
 
                                                                                                                                                          December 31,
                                                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                  2016                                                         2015
                                                                                                                        ---------------------------------------------------------                                          ---------------------------------------------------------
Assets:
    Real estate assets, at cost:
        Land                                                                                                                               $        751,351                                                                                   $        896,467
        Buildings and improvements, less accumulated depreciation of                                                                              2,121,150                                                                                          2,897,431
        $435,457 and $613,639, as of December 31, 2016 and 2015, respectively
        Intangible lease assets, less accumulated amortization of $112,777                                                                          193,311                                                                                            259,136
        and $250,085, as of December 31, 2016 and 2015, respectively
        Construction in progress                                                                                                                     36,188                                                                                             31,847
        Real estate assets held for sale, less accumulated depreciation and                                                      412,506                                               --  
        amortization of $180,791 as of December 31, 2016
                                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
                Total real estate assets                                                                                                          3,514,506                                                                                          4,084,881
    Investment in unconsolidated joint venture                                                                                                      127,346                                                                                            118,695
    Cash and cash equivalents                                                                                                                       216,085                                                                                             32,645
    Tenant receivables, net of allowance for doubtful accounts of $31                                                                                 7,163                                                                                             11,670
    and $8, as of December 31, 2016 and 2015, respectively
    Straight-line rent receivable                                                                                                                    64,811                                                                                            109,062
    Prepaid expenses and other assets                                                                                                                24,275                                                                                             35,848
    Intangible lease origination costs, less accumulated amortization of                                                                             54,279                                                                                             77,190
    $74,578 and $181,482, as of December 31, 2016 and 2015, respectively
    Deferred lease costs, less accumulated amortization of $22,753 and                                                                              125,799                                                                                             88,127
    $40,817, as of December 31, 2016 and 2015, respectively
    Investment in development authority bonds                                                                                                       120,000                                                                                            120,000
    Other assets held for sale, less accumulated amortization of $34,152                                                          45,529                                               --  
    as of December 31, 2016
                                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
            Total assets                                                                                                                   $      4,299,793                                                                $      4,678,118  
                                                                                                                        ==================== ============== ====================                                           ==================== ============== ====================
Liabilities:
    Line of credit and notes payable, net of deferred financing costs of                                                                   $        721,466                                                                                   $      1,130,571
    $3,136 and $4,492, as of December 31, 2016 and 2015, respectively
    Bonds payable, net of discount of $1,664 and $1,020 and deferred                                                                                692,972                                                                                            595,259
    financing costs of $5,364 and $3,721, as of December 31, 2016 and
    2015, respectively
    Accounts payable, accrued expenses, and accrued capital expenditures                                                                            131,028                                                                                             98,759
    Dividends payable                                                                                                                                36,727                                                                                             37,354
    Deferred income                                                                                                                                  19,694                                                                                             24,814
    Intangible lease liabilities, less accumulated amortization of                                                                                   33,375                                                                                             57,167
    $44,564 and $81,496, as of December 31, 2016 and 2015, respectively
    Obligations under capital leases                                                                                                                120,000                                                                                            120,000
    Liabilities held for sale, less accumulated amortization of $1,239                                                            41,763                                               --  
    as of December 31, 2016
                                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
            Total liabilities                                                                                                                     1,797,025                                                                                          2,063,924
Commitments and Contingencies                                                                                                                --                                                                                     --
Equity:
    Common stock, $0.01 par value, 225,000,000 shares authorized,                                                                                     1,221                                                                                              1,243
    122,184,193 and 124,363,073 shares issued and outstanding as of
    December 31, 2016 and 2015, respectively
    Additional paid-in capital                                                                                                                    4,538,912                                                                                          4,588,303
    Cumulative distributions in excess of earnings                                                                                               (2,036,482 )                                                                                       (1,972,916 )
    Accumulated other comprehensive loss                                                                                            (883 )                                                                        (2,436 )
                                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
            Total equity                                                                                                       2,502,768                                                    2,614,194  
                                                                                                                        -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
            Total liabilities and equity                                                                                                   $      4,299,793                                                                $      4,678,118  
                                                                                                                        ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                
 
                                                                                                                                                                                                                       COLUMBIA PROPERTY TRUST, INC.
                                                                                                                                                                                                                               CONSOLIDATED
                                                                                                                                                                                                                         STATEMENTS OF OPERATIONS
                                                                                                                                                                                                                      (in thousands, except per-share
                                                                                                                                                                                                                                 amounts)
 
                                                                                                                                                   (Unaudited)                                                                                                                                        
                                                                                                                                                                                     Three Months Ended                                                                                                                                                                                    Years Ended
                                                                                                                                                                                        December 31,                                                                                                                                                                                      December 31,
                                                                                                                ----------------------------------------------------------------------------------------------------------------------------------------------------                                                  ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                          2016                                                         2015                                                                                               2016                                                                                            2015
                                                                                                                ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          --------------------------------------------------
Revenues:
    Rental income                                                                                                                  $         85,472                                                                                   $        103,312                                                                                   $        366,186                                                                                   $ 436,048
    Tenant reimbursements                                                                                                                    14,219                                                                                             22,260                                                                                             69,770                                                                                      99,655
    Hotel income                                                                                                                              5,177                                                                                              5,411                                                                                             22,661                                                                                      24,309
    Other property income                                                                                                    900                                                        1,696                                                       14,926                                                 6,053  
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
                                                                                                                                            105,768                                                                                            132,679                                                                                            473,543                                                                                     566,065
Expenses:
    Property operating costs                                                                                                                 34,289                                                                                             43,703                                                                                            154,968                                                                                     188,078
    Hotel operating costs                                                                                                                     4,371                                                                                              4,546                                                                                             18,686                                                                                      19,615
    Asset and property management fees                                                                                                          357                                                                                                444                                                                                              1,415                                                                                       1,816
    Depreciation                                                                                                                             24,026                                                                                             31,229                                                                                            108,543                                                                                     131,490
    Amortization                                                                                                                             13,873                                                                                             19,895                                                                                             56,775                                                                                      87,128
    General and administrative                                                                                                                8,158                                                                                              7,762                                                                                             33,876                                                                                      29,683
    Acquisition expenses                                                                                          --                                               --                                               --                                                 3,675  
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
                                                                                                                          85,074                                                      107,579                                                      374,263                                               461,485  
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Real estate operating income                                                                                                                 20,694                                                                                             25,100                                                                                             99,280                                                                                     104,580
Other income (expense):
    Interest expense                                                                                                                        (15,194 )                                                                                          (19,035 )                                                                                          (67,609 )                                                                                   (85,296 )
    Interest and other income                                                                                                                 1,836                                                                                              1,806                                                                                              7,288                                                                                       7,254
    Loss on interest rate swaps                                                                                                      --                                                                                     --                                                                                     --                                                                                      (1,110 )
    Loss on the early extinguishment of debt                                                                      --                                               --                                                      (18,997 )                                                                 (3,149 )
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
                                                                                                                         (13,358 )                                                                       (17,229 )                                                                       (79,318 )                                                                (82,301 )
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Income before income tax, unconsolidated joint ventures, and                                                                                  7,336                                                                                              7,871                                                                                             19,962                                                                                      22,279
gains on sales of real estate assets
    Income tax expense                                                                                                                          (58 )                                                                                             (238 )                                                                                             (445 )                                                                                      (378 )
    Loss from unconsolidated joint venture                                                                                (2,120 )                                                                        (1,142 )                                                                        (7,561 )                                                                 (1,142 )
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Income before gains of sales of real estate assets                                                                                            5,158                                                                                              6,491                                                                                             11,956                                                                                      20,759
    Gains on sales of real estate assets                                                                                  22,242                                                        3,678                                                       72,325                                                23,860  
                                                                                                                -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Net income                                                                                                                         $         27,400                                                                $         10,169                                                                $         84,281                                                                $  44,619  
                                                                                                                ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
Per-share information - basic:
    Net income                                                                                                                     $           0.22                                                                $           0.08                                                                $           0.68                                                                $    0.36  
                                                                                                                ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
    Weighted-average common shares outstanding - basic                                                      122,709                                                      124,343                                                      123,130                                               124,757  
                                                                                                                ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
Per-share information - diluted:
    Net income                                                                                                                     $           0.22                                                                $           0.08                                                                $           0.68                                                                $    0.36  
                                                                                                                ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
    Weighted-average common shares outstanding - diluted                                                    122,855                                                      124,466                                                      123,228                                               124,847  
                                                                                                                ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
Dividends per share                                                                                                                $           0.30                                                                $           0.30                                                                $           1.20                                                                $    1.20  
                                                                                                                ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 
                                                                                                                                                                                                                          COLUMBIA PROPERTY TRUST, INC.
                                                                                                                                                                                                                              FUNDS FROM OPERATIONS
                                                                                                                                                                                                                      AND NORMALIZED FUNDS FROM OPERATIONS
                                                                                                                                                                                                                                 (in thousands,
                                                                                                                                                                                                                      except per-share amounts, unaudited)
 
                                                                                                                                                    Three Months Ended                                                                                                                                              Years Ended
                                                                                                                                                                                             December 31,                                                                                                                                                                                      December 31,
                                                                                                                     ----------------------------------------------------------------------------------------------------------------------------------------------------                                                  ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                               2016                                                         2015                                                                                               2016                                                      2015
                                                                                                                     ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          --------------------------------------------------
Reconciliation of Net Income to Funds From Operations and
Normalized Funds From Operations:
Net income                                                                                                                              $         27,400                                                                                   $         10,169                                                                                   $         84,281                                                                                   $  44,619
    Adjustments:
        Depreciation of real estate assets                                                                                                        24,026                                                                                             31,229                                                                                            108,543                                                                                     131,490
        Amortization of lease-related costs                                                                                                       13,873                                                                                             19,895                                                                                             56,775                                                                                      87,128
        Depreciation and amortization included in loss from unconsolidated                                                                         2,106                                                                                              1,606                                                                                              8,776                                                                                       1,606
        joint venture
        Gain on sale of real estate assets                                                                                    (22,242 )                                                                        (3,678 )                                                                       (72,325 )                                                                (23,860 )
                                                                                                                     -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
FFO                                                                                                                            45,163                                                       59,221                                                      186,050                                               240,983  
                                                                                                                     -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
    Real estate acquisition-related costs                                                                                                 --                                                                                     --                                                                                     --                                                                                       3,675
    Settlement of interest rate swap                                                                                                      --                                                                                     --                                                                                     --                                                                                       1,102
    Loss on early extinguishment of debt                                                                               --                                               --                                                       18,997                                                 3,149  
                                                                                                                     -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Normalized FFO                                                                                                                 45,163                                                       59,221                                                      205,047                                               248,909  
                                                                                                                     -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Per-share information - basic
        FFO per share                                                                                                                   $           0.37                                                                $           0.48                                                                $           1.51                                                                $    1.93  
                                                                                                                     ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
        Normalized FFO per share                                                                                                        $           0.37                                                                $           0.48                                                                $           1.67                                                                $    2.00  
                                                                                                                     ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
Weighted-average shares outstanding - basic                                                                                   122,709                                                      124,343                                                      123,130                                               124,757  
                                                                                                                     ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
Per-share information - diluted
        FFO per share                                                                                                                   $           0.37                                                                $           0.48                                                                $           1.51                                                                $    1.93  
                                                                                                                     ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
        Normalized FFO per share                                                                                                        $           0.37                                                                $           0.48                                                                $           1.66                                                                $    1.99  
                                                                                                                     ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
Weighted-average shares outstanding - diluted                                                                                 122,855                                                      124,466                                                      123,228                                               124,847  
                                                                                                                     ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 
                                                                                                                                                                                                               COLUMBIA PROPERTY TRUST, INC.
                                                                                                                                                                                                                    ADJUSTED FUNDS FROM
                                                                                                                                                                                                                        OPERATIONS
                                                                                                                                                                                                         (in thousands, except per-share amounts,
                                                                                                                                                                                                                        unaudited)
 
                                                                                                                                        Three Months Ended                                                                                                                                     Years Ended
                                                                                                                                                                                 December 31,                                                                                                                                                                             December 31,
                                                                                                                  ----------------------------------------------------------------------------------------------------------------------------------                                                  ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   2016                                                2015                                                                                               2016                                                      2015
                                                                                                                  ---------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          --------------------------------------------------
Reconciliation of Cash Flows from Operations to Adjusted Funds
From Operations:
Cash flows from operating activities                                                                                                 $         43,387                                                                 $         48,101                                                                                   $        193,091                                                                                   $ 223,080
    Adjustments:
        Straight-line lease terminations income                                                                                                   257                                                                              467                                                                                              2,367                                                                                        (949 )
        Adjustments included in loss from unconsolidated joint ventures                                                                          (968 )                                                                            320                                                                                             (1,248 )                                                                                       320
        Net changes in operating assets and liabilities                                                                                        (3,397 )                                                                          5,369                                                                                             (7,270 )                                                                                     1,179
        Acquisition costs                                                                                                              --                                                                   --                                                                                     --                                                                                       3,675
        Maintenance capital(1)(2)                                                                                          (82,311 )                                                     (20,505 )                                                                      (112,194 )                                                                (57,797 )
                                                                                                                  -------------------- -------------- --                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
Adjusted FFO                                                                                                                         $        (43,032 )                                                               $         33,752                                                                $         74,746                                                                $ 169,508  
                                                                                                                  ==================== ============== ==                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                       
      (1)   Maintenance capital is defined as Capital expenditures incurred to
                                                                                        maintain the building structure and functionality, and to lease
                                                                                        space at our properties in their current condition. Maintenance
                                                                                        capital excludes capital for recent acquisitions and first
                                                                                        generation leasing.
                                                                                         
                                                               (2)                      Reflects 51% of the capital expenditures of the Market Square Joint
                                                                                        Venture, in which Columbia Property Trust owns a 51% interest.
                                                                                         
 
                                                                                                                                                                                                                           COLUMBIA PROPERTY TRUST, INC.
                                                                                                                                                                                                                             NET OPERATING INCOME AND
                                                                                                                                                                                                               SAME STORE NET OPERATING INCOME (BASED ON GAAP RENTS)
                                                                                                                                                                                                                                     (in
                                                                                                                                                                                                                               thousands, unaudited)
 
                                                                                                                                                      Three Months Ended                                                                                                                                              Years Ended
                                                                                                                                                                                               December 31,                                                                                                                                                                                      December 31,
                                                                                                                       ----------------------------------------------------------------------------------------------------------------------------------------------------                                                  ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                 2016                                                         2015                                                                                               2016                                                      2015
                                                                                                                       ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          --------------------------------------------------
Reconciliation of Net Income to Net Operating Income (based on
GAAP rents) and Same Store NOI (based on GAAP Rents):
    Net income                                                                                                                            $         27,400                                                                                   $         10,169                                                                                   $         84,281                                                                                   $  44,619
        Net interest expense                                                                                                                        15,158                                                                                             19,030                                                                                             67,538                                                                                      85,265
        Interest income from development authority bonds                                                                                            (1,800 )                                                                                           (1,800 )                                                                                           (7,200 )                                                                                    (7,200 )
        Income tax expense                                                                                                                              58                                                                                                238                                                                                                445                                                                                         378
        Depreciation                                                                                                                                24,026                                                                                             31,229                                                                                            108,543                                                                                     131,490
        Amortization                                                                                                                                13,873                                                                                             19,895                                                                                             56,775                                                                                      87,128
        Adjustments included in loss from unconsolidated joint venture                                                            4,216                                                        3,079                                                       17,213                                                 3,079  
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
    EBITDA                                                                                                                                $         82,931                                                                $         81,840                                                                $        327,595                                                                $ 344,759  
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
        Real estate acquisition costs                                                                                                       --                                                                                     --                                                                                     --                                                                                       3,675
        Settlement of interest rate swaps                                                                                                   --                                                                                     --                                                                                     --                                                                                       1,102
        Loss on early extinguishment of debt                                                                                                --                                                                                     --                                                                                             18,997                                                                                       3,149
        Gain on sale of real estate assets                                                                                      (22,242 )                                                                        (3,678 )                                                                       (72,325 )                                                                (23,860 )
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
    Adjusted EBITDA                                                                                                                       $         60,689                                                                $         78,162                                                                $        274,267                                                                $ 328,825  
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
        General and administrative                                                                                                                   8,158                                                                                              7,762                                                                                             33,876                                                                                      29,683
        Interest rate swap valuation adjustment                                                                                             --                                                                                     --                                                                                     --                                                                                      (2,634 )
        Interest expense associated with interest rate swaps                                                                                --                                                                                     --                                                                                     --                                                                                       2,642
        Adjustments included in loss from unconsolidated joint venture                                                                8                                                           55                                                           80                                                    55  
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
    Net Operating Income (based on GAAP rents) - consolidated                                                                             $         68,855                                                                $         85,979                                                                $        308,223                                                                $ 358,571  
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
    Same Store NOI (based on GAAP rents) - 51% of Market Square Buildings(1)                                                                        (2,104 )                                                                                           (2,908 )                                                                                           (9,732 )                                                                                   (14,021 )
    Net Operating Income from:
        Acquisitions(2)                                                                                                                            (11,907 )                                                                                          (11,759 )                                                                                          (46,145 )                                                                                   (31,189 )
        Dispositions(3)                                                                                                          (1,224 )                                                                       (14,088 )                                                                       (27,319 )                                                                (86,376 )
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
    Same Store NOI (based on GAAP rents) - wholly-owned properties(4)                                                                     $         53,620                                                                $         57,224                                                                $        225,027                                                                $ 226,985  
                                                                                                                       ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
      (1)    Reflects NOI for 51% of the Market Square Buildings for all periods
                                                                                         presented. On October 28, 2015, we transferred the Market Square
                                                                                         Buildings and the $325.0 million mortgage note to a joint venture,
                                                                                         and sold a 49% interest in the joint venture. Beginning on October
                                                                                         28, 2015, upon entering the joint venture, our interest in NOI from
                                                                                         the Market Square Buildings is included in loss from unconsolidated
                                                                                         joint venture on our income statement.
                                                                                         
                                                               (2)                       Reflects activity for the following properties acquired since
                                                                                         January 1, 2015: 229 West 43rd Street, 116 Huntington Avenue, and
                                                                                         315 Park Avenue South.
                                                                                         
                                                               (3)                       Reflects activity for the following properties sold since January 1,
                                                                                         2015: SanTan Corporate Center, Sterling Commerce, 80 Park Plaza,
                                                                                         9127, 9189, 9191 & 9193 South Jamaica Street, 800 North
                                                                                         Frederick,100 East Pratt, 1881 Campus Commons, 49% of the Market
                                                                                         Square Buildings, 170 Park Avenue, 180 Park Avenue, 1580 West
                                                                                         Nursery Road, Acxiom, Highland Landmark III, The Corridors III, 215
                                                                                         Diehl Road, 544 Lakeview, Bannockburn Lake III, 550 King Street, and
                                                                                         Robbins Road.
                                                                                         
                                                               (4)                       Reflects NOI from properties that were wholly-owned for the entirety
                                                                                         of the periods presented.
                                                                                         
 
                                                                                                                                                                                                                           COLUMBIA PROPERTY TRUST, INC.
                                                                                                                                                                                                                               NET OPERATING INCOME
                                                                                                                                                                                                             AND SAME STORE NET OPERATING INCOME (BASED ON CASH RENTS)
                                                                                                                                                                                                                                     (in
                                                                                                                                                                                                                               thousands, unaudited)
 
                                                                                                                                                      Three Months Ended                                                                                                                                              Years Ended
                                                                                                                                                                                               December 31,                                                                                                                                                                                      December 31,
                                                                                                                       ----------------------------------------------------------------------------------------------------------------------------------------------------                                                  ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                 2016                                                         2015                                                                                               2016                                                      2015
                                                                                                                       ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          --------------------------------------------------
Reconciliation of Net Income to Net Operating Income (based on
cash rents) and Same Store NOI (based on cash rents):
    Net income                                                                                                                            $         27,400                                                                                   $         10,169                                                                                   $         84,281                                                                                   $  44,619
        Net interest expense                                                                                                                        15,158                                                                                             19,030                                                                                             67,538                                                                                      85,265
        Interest income from development authority bonds                                                                                            (1,800 )                                                                                           (1,800 )                                                                                           (7,200 )                                                                                    (7,200 )
        Income tax expense                                                                                                                              58                                                                                                238                                                                                                445                                                                                         378
        Depreciation                                                                                                                                24,026                                                                                             31,229                                                                                            108,543                                                                                     131,490
        Amortization                                                                                                                                13,873                                                                                             19,895                                                                                             56,775                                                                                      87,128
        Adjustments included in loss from unconsolidated joint venture                                                            4,216                                                        3,079                                                       17,213                                                 3,079  
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
    EBITDA                                                                                                                                $         82,931                                                                $         81,840                                                                $        327,595                                                                $ 344,759  
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
        Real estate acquisition costs                                                                                                       --                                                                                     --                                                                                     --                                                                                       3,675
        Settlement of interest rate swaps                                                                                                   --                                                                                     --                                                                                     --                                                                                       1,102
        Loss on early extinguishment of debt                                                                                                --                                                                                     --                                                                                             18,997                                                                                       3,149
        Gain on sale of real estate assets                                                                                      (22,242 )                                                                        (3,678 )                                                                       (72,325 )                                                                (23,860 )
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
    Adjusted EBITDA                                                                                                                       $         60,689                                                                $         78,162                                                                $        274,267                                                                $ 328,825  
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
        General and administrative                                                                                                                   8,158                                                                                              7,762                                                                                             33,876                                                                                      29,683
        Interest rate swap valuation adjustment                                                                                             --                                                                                     --                                                                                     --                                                                                      (2,634 )
        Interest expense associated with interest rate swaps                                                                                --                                                                                     --                                                                                     --                                                                                       2,642
        Straight-line rental income                                                                                                                 (6,152 )                                                                                           (5,023 )                                                                                          (19,984 )                                                                                   (17,739 )
        Net effect of above/(below) market amortization                                                                                               (611 )                                                                                           (1,774 )                                                                                           (4,244 )                                                                                    (9,127 )
        Adjustments included in loss from unconsolidated joint venture                                                             (952 )                                                                           (94 )                                                                        (2,433 )                                                                    (94 )
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
    Net operating income (based on cash rents) - consolidated                                                                             $         61,132                                                                $         79,033                                                                $        281,482                                                                $ 331,556  
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
    Same Store NOI (based on cash rents) - 51% of Market Square Buildings(1)                                                                        (1,144 )                                                                                           (2,685 )                                                                                           (7,219 )                                                                                   (12,640 )
    Net Operating Income from:
        Acquisitions(2)                                                                                                                             (9,438 )                                                                                           (9,116 )                                                                                          (39,581 )                                                                                   (23,711 )
        Dispositions(3)                                                                                                          (1,435 )                                                                       (13,100 )                                                                       (20,796 )                                                                (80,844 )
                                                                                                                       -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ------- --------------------
    Same store NOI (based on cash rents) - wholly-owned properties(4)                                                                     $         49,115                                                                $         54,132                                                                $        213,886                                                                $ 214,361  
                                                                                                                       ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                 
      (1)   Reflects NOI for 51% of the Market Square Buildings for all periods
                                                                                        presented. On October 28, 2015, we transferred the Market Square
                                                                                        Buildings and the $325.0 million mortgage note to a joint venture,
                                                                                        and sold a 49% interest in the joint venture. Beginning on October
                                                                                        28, 2015, upon entering the joint venture, our interest in NOI from
                                                                                        the Market Square Buildings is included in loss from unconsolidated
                                                                                        joint venture on our income statement.
                                                                                         
                                                               (2)                      Reflects activity for the following properties acquired since
                                                                                        January 1, 2015: 229 West 43rd Street, 116 Huntington Avenue, and
                                                                                        315 Park Avenue South.
                                                                                         
                                                               (3)                      Reflects activity for the following properties sold since January 1,
                                                                                        2015: SanTan Corporate Center, Sterling Commerce, 80 Park Plaza,
                                                                                        9127, 9189, 9191 & 9193 South Jamaica Street, 800 North
                                                                                        Frederick,100 East Pratt, 1881 Campus Commons, 49% of the Market
                                                                                        Square Buildings, 170 Park Avenue, 180 Park Avenue, 1580 West
                                                                                        Nursery Road, Acxiom, Highland Landmark III, The Corridors III, 215
                                                                                        Diehl Road, 544 Lakeview, Bannockburn Lake III, 550 King Street, and
                                                                                        Robbins Road.
                                                                                         
                                                               (4)                      Reflects NOI from properties that were wholly-owned for the entirety
                                                                                        of the periods presented.
                                                                                         

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170209006254r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170209006254/en/

SOURCE: Columbia Property Trust, Inc."> <Property FormalName="PrimaryTwitterHandle" Value="@ColumbiaCXP

Columbia Property Trust, Inc. 
Media Contact: 
Bud Perrone, 212-843-8068 
bperrone@rubenstein.com 
or 
Investor Relations: 
Matt Stover, 404-465-2227 
IR@columbiapropertytrust.com


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